Tag: Greenfield

Dealing with Organizational Change Inherent in Driving Today’s Application Services | Sherpas in Blue Shirts

In my two previous blog posts, I pointed out two factors driving demand for application services today, and that they result in greenfield and brownfield opportunities. The third factor in the app demand profile is what we at Everest Group refer to as “vanishing scope.” The objective here is to use new technologies to change the value equation (through speed or cost savings), and it can present greenfield or brownfield opportunities. Of the three, this third factor designates application services that require the most change inside an organization.

Something very significant is happening in the vanishing-scope space: We’re seeing really slow, incremental adoptions of these technology-enabled initiatives even though the potential for change is dramatic. Although people see how new technologies and approaches clearly can drive big impacts, the initiatives fail to get traction – thus the vanishing scope designation.

Because they seek to change the status quo, executives must recognize that there will be passive-aggressive resistance. There is a very different set of emotions and issues to deal with in passive-aggressive behaviors. And people tend to blame the technology for failure.

In the successful examples of successfully driving big change that we know of, the executives had to drive through that resistance and turn it around. Executives need to define the intended performance breakthrough in a very clear way and engage the organization to embrace that vision and change.

In all three factors in the demand profile driving application services today, disruptive technologies enable both greenfield and brownfield opportunities. But these new, innovative technologies often require end-to-end orientation. The opportunities for growth and for changing the way services are delivered require a different way of organizing people, ensuring and empowering the right talent and aligning them with the breakthrough performance objectives.

Greenfield Opportunities in Demand Profile for Application Services | Sherpas in Blue Shirts

Three factors are reshaping the demand profile for application services, changing the services in fundamental ways. The first factor is best exemplified by digital technologies. Basically these are new technologies that create new business opportunities in enterprises. Inside of this would be cloud, mobility, social, big data and the IoT. They are made possible because of the innovations and disruptive technologies that are coming into the marketplace. There is an important aspect to these opportunities, which significantly impacts the services industry.

We can refer to this first factor of demand for application services as “greenfield” opportunities. In this space, is there is no provider incumbency and there no ecosystem is in place. Because these demand areas (cloud, mobility, big data, social and IoT) are new and never been done before, they are closely linked to a client’s business agenda driving growth. These greenfield app services are often funded and driven by the business and new money, and the sponsors are very senior-level executives within the organization.

Business units are highly involved in these app initiatives because they hold potential for market share gains or competitiveness shifts. And they’re new and exciting. It’s always more fun to work on initiatives for growth, and it’s much easier to spend greenfield money than it is to take money away from the brownfield existing ecosystem.

This source of app demand services is really exciting for CIOs and service providers because it’s using technology for what they want technology to do. In my next blog posts, I’ll discuss the other two factors in the profile demand for application services.

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